PEA PME-ETI: An Enhanced Version of the French PEA of Interest for EU Asset Managers

A new French tax law, effective since the beginning of this year, has generated much excitement by creating an enhanced favorable tax regime – the PEA PME-ETI – for individual investors. The new regime is similar to the PEA – a share savings plan that allows French individuals to benefit from a tax exemption for capital gains, distributions and other income related to their investments in equity issued by companies located in EU Member States and certain EEA Member States. The new law provides tax benefits for investments in small and medium companies (PME) as well as Mid Cap companies (ETI).